Chrysler's Nardelli to the Canadian Auto Workers union: Cut us some slack, eh?

Chrysler Chief Executive Bob Nardelli says the automaker's Canadian operations are in danger of being closed unless the Canadian Auto Workers union agrees to deep wage cuts. Nardelli sent an e-mail to the company's workers that is posted on the Web site of Detroit radio station WWJ. You can read it here.

The Canadian government has given Chrysler $750 million (Canadian) in loans, but says Chrysler must trim the $19 an hour labor (or labour, if you're reading this in Canada) cost difference between Chrysler and the Canadian operations of Toyota and Honda to obtain more support.

Last year, the CAW negotiated a lucrative contract with Detroit' automakers that veteran Canadian auto analyst Dennis DesRosiers said amounted to about a $10 an hour cost disadvantage against the 2007 contracts reached between the Detroit companies and the United Auto Workers union.

I wrote a column last May about that CAW contract, which you can find here

DesRosiers told me at the time the CAW would eventually pay a stiff price for its success at the bargaining table.

"Canada is now the highest-cost place in the world to build vehicles," DesRosiers said. "That's not a good place to be."